Boralex Inc Cl A (BLX) AI Stock Analysis

• Market Cap: C$3.14B
• Dividend Yield: 2.16%
• Average Volume (3M): 266.54K
• Price to Earnings (P/E): 285.6
• Beta (1Y): 1.04
• Revenue Growth: -16.63%
• EPS Growth: -87.78%
• Country: CA
• Employees: 822
• Sector: Utilities
• Sector Strength: 88
• Industry: Renewable Utilities
• EPS (TTM): 0.29
• Shares Outstanding: 102,755,360
• 10 Day Avg. Volume: 225,915
• 30 Day Avg. Volume: 266,537
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$39.71
• Price Target Upside: 29.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: C$33.00 ▲(7.98% Upside)

Boralex Inc Cl A's overall stock score reflects a mix of strengths and challenges. The company shows strong strategic positioning and growth potential, as highlighted in the earnings call. However, financial performance is hindered by high leverage and declining cash flow metrics. The high P/E ratio suggests the stock is overvalued, which, combined with neutral technical indicators, results in a cautious outlook.

Positive Factors

Asset Divestitures

Potential upcoming asset divestitures, such as the Cdn hydro assets, could unlock value and highlight that BLX shares (and the broader renewable sector) are undervalued.

Asset Quality

Asset quality is strong, with the majority of production contracted with creditworthy counter-parties, providing a stable revenue foundation.

Growth Guidance

BLX highlighted robust growth guidance of 8-10% combined EBITDA CAGR leading to 8-10% discretionary cash per share, with a target of 7GW of generating capacity by 2030.

Negative Factors

Financial Guidance Skepticism

Despite management's proven track record and the favorable renewable industry backlog, the share price reaction was muted, which is probably driven by skepticism around the new financial guidance.

Market Skepticism

Despite management's proven track record and the favorable renewable industry backlog, the share price reaction was muted, driven by skepticism around the new financial guidance.

Boralex Inc Cl A Business Overview & Revenue Model

Company Description

Boralex Inc. is a Canadian company that develops, builds, and operates renewable energy power facilities primarily in Canada, France, the United States, and the United Kingdom. The company focuses on the production of wind, solar, hydroelectric, and thermal energy. As a leader in the renewable energy sector, Boralex is committed to sustainable development and innovation in its operations.

How the Company Makes Money

Boralex Inc. generates revenue primarily through the sale of electricity produced from its renewable energy facilities. The company enters into long-term power purchase agreements (PPAs) with utilities and other large energy consumers, providing a stable and predictable revenue stream. These agreements ensure that Boralex can sell the energy it produces at predetermined prices over extended periods, often ranging from 15 to 20 years. Additionally, Boralex benefits from government incentives and subsidies aimed at promoting renewable energy production. The company's strategic partnerships and joint ventures, along with its continuous expansion of energy capacity through new projects and acquisitions, further contribute to its earnings.

Boralex Inc Cl A Financial Statement Overview

Summary

Boralex Inc Cl A demonstrates strong gross profitability but struggles with net profitability and cash flow generation. The high leverage is a concern, especially with declining revenue and profitability metrics. Stability in operational efficiency and reduction in capital expenditures could improve financial health.

Income Statement

The company has shown inconsistent revenue growth with a decline in the recent TTM period. Gross profit margin is strong at 74.97% for TTM, indicating effective cost management. However, the net profit margin is low at 1.36% for TTM, reflecting challenges in converting revenue into net income. EBITDA margin remains healthy, but the decreasing EBIT margin suggests rising operational costs.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.74, indicating significant leverage which could pose risks if earnings do not improve. The equity ratio is moderate at 21.12%, showing a reasonable level of equity financing. Return on equity is weak at 0.69% for TTM, pointing to inefficiencies in generating profit from shareholders' equity.

Cash Flow

Operating cash flow has decreased significantly, impacting the operating cash flow to net income ratio, which is now 14.27. Free cash flow has turned negative in the TTM period, reflecting high capital expenditures. The free cash flow to net income ratio is negative, indicating difficulty in generating free cash flow from net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	853.00M	1.02B	836.00M	691.00M	633.00M
Gross Profit	358.00M	642.00M	578.00M	538.00M	482.00M
EBITDA	534.00M	517.00M	406.00M	472.00M	410.00M
Net Income	36.00M	78.00M	30.00M	17.00M	55.00M
Balance Sheet
Total Assets	7.60B	6.57B	6.54B	5.75B	5.31B
Cash, Cash Equivalents and Short-Term Investments	592.00M	478.00M	361.00M	259.00M	275.00M
Total Debt	4.30B	3.62B	3.61B	3.91B	3.77B
Total Liabilities	5.58B	4.55B	4.51B	4.54B	4.32B
Stockholders Equity	1.60B	1.63B	1.68B	1.00B	989.00M
Cash Flow
Free Cash Flow	-237.00M	216.00M	257.00M	166.00M	206.00M
Operating Cash Flow	215.00M	496.00M	513.00M	345.00M	362.00M
Investing Cash Flow	-578.00M	-268.00M	-684.00M	-433.00M	-247.00M
Financing Cash Flow	479.00M	-109.00M	261.00M	75.00M	-413.00M

Boralex Inc Cl A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLX, the sentiment is Negative. The current price of 30.56 is below the 20-day moving average (MA) of 31.62, below the 50-day MA of 31.88, and above the 200-day MA of 29.78, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 11.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BLX.

Boralex Inc Cl A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INE	72 Outperform	$2.79B	69.96	4.20%	2.62%	0.97%	―
PIF	70 Neutral	C$0.00	59.81	-4.34%	6.72%	4.98%	-244.98%
Sector *	63 Neutral	C$7.73B	6.29	-19.03%	4.59%	9.48%	-73.13%
BLX	56 Neutral	C$3.14B	285.61	0.67%	2.16%	-16.63%	-87.78%
BEP	―	$17.13B	―	-5.97%	5.60%	―	―
AQN	―	$4.54B	―	5.54%	4.38%	―	―
NPIFF	―	$4.29B	22.64	6.08%	5.30%	―	―

Boralex Inc Cl A Corporate Events

Boralex Secures $250 Million to Boost Renewable Energy Projects

Boralex Inc. has secured $250 million in corporate financing through an unsecured subordinated loan, with $200 million from La Caisse and $50 million from Fondaction. This financing aligns with Boralex’s 2030 Strategy, enhancing its capacity to fund growth activities and diversify financing sources. The investment underscores confidence in Boralex’s growth potential and supports its clean energy infrastructure development, aligning with broader climate and socioeconomic objectives.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Named Top Corporate Citizen in Canada by Corporate Knights

Boralex Inc. has been recognized as the top company in Corporate Knights’ annual ‘Best 50 Corporate Citizens’ ranking in Canada, highlighting its commitment to sustainable development and corporate responsibility. This accolade underscores Boralex’s dedication to a renewable energy future and its strategic focus on social responsibility, reflecting its collaborative efforts with stakeholders and its ongoing initiatives to combat climate change.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Announces Leadership Transition with Chair’s Retirement

Boralex Inc. announced the retirement of Alain Rhéaume as Chair of the Board of Directors, effective once a successor is appointed by December 2025. Under Rhéaume’s leadership, the company has renewed its executive team, welcomed new directors, and pursued strategic plans, positioning itself well in the renewable energy sector amidst global economic challenges and opportunities in energy demand.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Unveils Ambitious 2030 Strategic Plan and Financial Goals

Boralex Inc. has announced its strategic plan and financial objectives for 2030, aiming to double its installed capacity every five years and increase the weighted average remaining contract duration from 11 to 14 years. The company plans to achieve a compound annual growth rate of 12% to 14% in operating income and 8% to 10% in cash flows per share, supported by a $6.8 billion investment plan. This strategy focuses on sustainable growth through a high-quality project pipeline and disciplined financial management, positioning Boralex to capitalize on the growing demand for renewable energy in its key markets.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Appoints New Executive VP for North America

Boralex Inc. has announced the appointment of Robin Deveaux as Executive Vice President and General Manager for North America, succeeding Hugues Girardin, who will retire at the end of 2025. Deveaux, with over 20 years of experience in renewable energy, is expected to lead the company as it prepares to unveil its 2030 Strategy, continuing the legacy of growth and community engagement established by Girardin.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Expands U.S. Renewable Energy Portfolio with New York Solar Projects

Boralex Inc. has announced the signing of contracts for two solar projects in New York, totaling 450 MW, as part of its U.S. growth strategy. These projects, located in Franklin and St. Lawrence Counties, are expected to significantly contribute to New York’s renewable energy targets and provide substantial economic benefits to local communities, including job creation and increased tax revenues.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Inc. Reports Q1 2025 Earnings and Launches First UK Wind Farm

Boralex Inc. reported net earnings of $41 million for the first quarter of 2025, marking a decrease from the previous year due to lower production and less favorable power purchase agreement prices in France. Despite these challenges, the company commenced production at the Limekiln wind farm in Scotland, its first operational project in the UK, highlighting its strategic growth in a promising market. The company continues to advance its projects in Canada and is preparing for upcoming tenders, aiming to strengthen its market position and operational performance.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$36.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.